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2 years ago

Hyundai is considering opening a plant in two neighboring states.

Business

1 answer:

Svetach [21]2 years ago

5 0

Answer:

a. What is the after state taxes profit in the state with the 10% tax rate?

after state tax profit = $1,015,000 x (1 - state tax rate) = $1,015,000 x 0.90 = $913,500

b. What is the after state taxes profit in the state with the 2% tax rate?

after state tax profit = $960,000 x (1 - state tax rate) = $960,000 x 0.98 = $940,800

Unlike federal corporate taxes which apply to all US corporations regardless of where they operate, state corporate taxes vary a lot depending on the state. Some states do not collect any tax at all (6 states) while others charge taxes that vary from 2.5% to 12%.

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Select the true statement about default risk. It is the risk that the bond's price will fall below its par value. Bondholders ha

Novosadov [1.4K]

Answer:

Bondholders have a degree of legal protection against default risk, but it is not comprehensive.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Default risk in bonds refer to the risk that a bond issuer (borrower) is unable to pay the principal or interest agreed upon in the contract with the bondholder (lender) in a timely manner.

Hence, the true statement about default risk is that bondholders have a degree of legal protection against default risk, but it is not comprehensive.

5 0

2 years ago

McQuilkin and Copan adopt different positions toward capitalism and socialism. Which author is more favorable to free market cap

Nimfa-mama [501]

Answer:

Paul Copan

Explanation:

Dr. Robertson McQuilkin can be considered a very biblical man, and as such, would always favor socialism more than free market capitalism. His phrase "Capitalism is for freedom, socialism is for equality" and the fact that he believed in a strict following of the Bible, you make him a more socialist person.

Dr. Paul Copan is also a very religious man, but his views are less extreme than Dr. McQuilkin's. He is more pragmatic and argues in favor of religion from a more neutral or agnostic point of view. He even argues that religious beliefs and economics are not mutually exclusive.

8 0

2 years ago

Brooks Company is a consulting firm and applies indirect overhead costs based on billing hours. The firm expects to have $75,000

valina [46]

Answer:

$2325

Explanation:

Indirect costs =75000/750=$100 per hour

Direct Labour = $55 per hour

Total cost per hour =100+55=$155

$155 ×15= $2325

The total cost for the consulting job for George Peterson is $2325

5 0

2 years ago

If a business offers both routine and specialized services, a single cost driver rate will overprice: A. the specialized servi

Svetlanka [38]

Answer:

D. the routine service.

Explanation:

Single cost driver rate: It is a cost assigned to each unit of cost driver activity directly. Cost driver also influence other business activity and effect the total cost incurred.

In the given case, Business offer both routine and specialized service, as we know single cost driver influence driver directly, therefore, cost driver of specialized service will overprice the routine service.

6 0

2 years ago

IM.72 The Candy Shack has a monthly demand of 150 bags of Watermelon Slices. They pay $10.97 for each box of candy which contain

alisha [4.7K]

Answer:

a). Total annual demand=13 boxes

b). Material cost per bag=$1.60

Explanation:

a). The following expressions can be derived;

Total number of bags=number of bags per box×number of boxes

where;

Total number of bags=150 bags

Number of bags per box=12 bags

Number of boxes=n

Replacing;

150=12×n

12 n=150

n=150/12=12.5

Number of boxes =12.5 rounded to the nearest whole number=13

Total annual demand=13 boxes

b). Material cost per bag

Total material costs=(Cost per box×number of boxes demanded)+Ordering cost

Total material costs=(10.97×13)+75=$217.61

Additional cost=(10/100)×217.61=21.761

Total material costs=(217.61+21.761)=239.371

Material cost per bag=Total material cost/number of bags

where;

Total material cost=$239.371

Total number of bags=150 bags

replacing;

Material cost per bag=239.371/150

Material cost per bag=1.596 to nearest two decimal places=1.60

Material cost per bag=$1.60

5 0

2 years ago